AOL: Earnings Beat Forecast, Shares Rise

The company reported that its profits soared to $21.1 million, more than four times the $4.7 million recorded during the same period last year.

AOL shares rose about 5% in early Wednesday trading.

EPS for the first quarter was 22 cents, which bested analysts’ forecast of 17 cents, according to Bloomberg. First-quarter EPS last year was just 4 cents.

Total sales for the quarter were $529.4 million, down 4% from $551.4 million in 2011, but still enough to beat analysts who had predicted $525.2 million.

Advertising sales rose 5% during the quarter to hit $330.1 million. However, display ads slipped 1% to $118.9 million, the first drop in five consecutive quarters, Bloomberg noted.

The previously announced $1.06 billion sale of 800 patents to Microsoft (NASDAQ:MSFT[3]) will be finalized later this year, according to AOL. The company noted that a $211.2 termination fee is attached to the deal.

Last week, Arianna Huffington publicly denied rumors[4] that she intended to purchase the Huffington Post back from AOL. The company has been attempting to rebrand itself as a digital media provider as its dial-up internet connection business disappears.